What is Your Financial Future?
Developing a Family Snapshot
The LONG winter is finally in the rear-view mirror, your taxes are complete and you’re ready to bring on summer. But before you open the pool, head to the cottage or start tending to the garden, it’s a good time of year to think about your financial future. Do you know what your financial future looks like?
Most experts in the field of personal finance agree that financial planning is an essential part of keeping your finances on track. For many people, though, a full financial plan can be expensive or time-consuming to prepare and can produce a plan that’s more complicated than is required. Wouldn’t it be nice if there were a simpler tool that could tell you if you were on-track to meeting your future financial goals?
Introducing A Family Snapshot
The Family Snapshot isn’t a financial plan. Rather, it’s a report that takes the things you already know (such as your income, the equity in your house, the current value of your investments and your annual taxes and expenses) and projects them into the future based on a set of assumptions about what may happen in the future (for example, the expected average rate of inflation and how much you intend to spend in retirement).
Addressing the Questions You Want Answered
The report is broken down into six sections, each of which is designed to address some of the questions that can keep you awake at night:
1. Summary - “What Does My Current Financial Situation Look Like?”
This two-page report gives you a snapshot of your current financial situation. Incomes, savings, expenses, investments, real estate, insurance policies and pension plans – all of your critical financial information is presented in a concise, two-page summary.
2. Cash Flow and Net-Worth Analysis - “If I Live to Be 90, Will I Have Sufficient Funds to Maintain My Current Lifestyle?”
Based on the information in the Summary Report, the Cash Flow and Net-Worth Analysis section projects your incomes, savings, taxes, expenses and the value of your assets into the future using a set of assumptions.
3. Estate Shrinkage and Insurance Needs Analysis - “If I Had Died Yesterday, Would I Have Left Sufficient Assets to Provide for My Family?”
Anticipating your future financial needs is a difficult task. Anticipating your family’s future financial needs should you or your spouse die unexpectedly, is an even more difficult task. The Estate Shrinkage and Insurance Needs Analysis section of the report can help you identify any potential financial shortfalls should an unexpected tragedy strike you or your family.
4. Retirement Funding Sensitivity Illustrator - “What if My Financial Assumptions About the Future Were to Change?”
It’s impossible to know for certain what will happen tomorrow. To provide a financial projection, however, certain assumptions about what will happen in the economy have to be made. But what if some of those assumptions prove to be wrong? What if, for example, you were forced to retire early? Or perhaps you end up spending more in retirement. The Retirement Funding Sensitivity Illustrator allows you to independently change the assumptions you have made about the future to see how that change will affect your finances.
5. Personal Wealth Management Opportunity Report - “What Can I Do Now and in the Future to Make Sure My Financial Priorities Become Reality?”
The Personal Wealth Management Opportunity Report outlines key financial products, solutions and strategies, which are tailored to your financial situation and priorities. The information in the report can help you to make the most of what you have – both now and in the future.
6. Business Owner Planning and Opportunity Reports - “Could My Business Survive a Major Change or Crisis?”
For business owners, the line between work and life is much less clear. The Business Owner Planning and Opportunity Reports provide an introduction to succession planning for business owners, as well as two reports outlining solutions and strategies that can be pursued from the business side or from the personal side of your finances. Each report is tailored to your own situation and covers only those topics which apply to you, your business and your family – strategies designed to keep you in control of your financial future.
The Family Snapshot can help you make the most of what you have – both now and in the future – by identifying important financial strategies tailored to your individual situation.